advising bank and nominated bank

21 replies [Last post]
balram s. iyengar
Offline
Joined: 10/05/2008
Printer-friendly versionSend by emailPDF version

what are the role , rights and liabilities of advising bank and nominated  bank  ?

surendar singh
Offline
Joined: 01/27/2011
nominated bank

can any one explian 

 who is nominated bank and role of nominated bank 

nominated bank is bank nominated by issuing bank that docs shld be forwarded to us through bank which we nominate anything loke this...

thank you  

slai10
Offline
Joined: 03/15/2010
2010 BUSINESS 2010

How to become to rich ? AUTOMATED FOREX SYSTEM

http://hotmail.zulutrade.com

YOU OPEN ACCOUNT AND ADD A SIGNAL PROVIDER
from PERFORMANCE...

http://hotmail.zulutrade.com

alikhan
Offline
Joined: 03/19/2010
nominated bank

is nominated bank  liable for payment if documents are presented,or is it never liable unless it becomes confirming bank?which condition is true??? y and how banks are nominated?

smmujeeb
Offline
Joined: 07/29/2008
Roles

Role of advising bank : Advising bank means the bank that advises the credit at the request of the issuing bank.

A credit and any amendment may be advised to a beneficiary through an advising bank. an advising bank that is not a confirming bank advises the credit and any amendment without any undertaking to honour or negotiate.

By advising the credit or amendment, the advising bank signifies that it has satisfied itself as to the apparent authenticity of the credit or amendment and that the advice accurately reflects the terms and conditions of the credit or amendment received. Advising bank may utilize the services of another bank ("second advising bank") to advise the credit and any amendment to the bene. by adivising the credit or amendment, the second adivsing bank signifies that it has satisfied itself as to the apparent authenticity of the advice it has received and that the advice accurately reflects the terms and conditions of the credit or amd

If a bank is requested to advise a credit or AMD but cannot satisfy itself as to the apparent authenticity of the credit, the amendment or the advice, it must so inform, without delay, the bank from whihc the instructions appear to have been received.

Nominated bank : means the bank with wich the credit is available or any bank in the case of a credit available with any bank

Unless a nominated bank is the confirming bank, an authorization to honour or negotate does not impose any obligation on that nominiated bank to honor or negotiate, except when expressly agreed to by that nominated bank and so communicated to the bene.

By nominating a bank to accept a adraft or incur a deferred payment undertaking an issuing bank authorizes that nominated bank to prepay or purchase a draft accepted or a deferred payment undertaking incurred b that nominated bank.

Receipt or examination and forwarding of dox bya anominated bank that is not a confirming bak does not make that nominated bank liable to honor or negotiate, nor does it consititue honor or negotiation.

alikhan
Offline
Joined: 03/19/2010
plz reply

Nominated bank : means the bank with which the credit is available or any bank in the case of a credit available with any bank.

what do you mean by credit available and what is "bene"?

what is difference between "honor" and "negotiate"?

maildilprit
Offline
Joined: 08/12/2008
advising bank and nominated bank

Dear smmujeeb

 

great! u have explained so well .

I have one more question.

Article 6 states credit available with a nominated bank is also available with the issuing bank.My understanding is that though issuing bank has mentioned the negotiating bank ,issuing bank can also negotiate the documents.

Is it correct?

 

 

Catalyst
Offline
Joined: 06/15/2007
Available with Issuing Bank

Just a few quick points in rsponse to your query:

  1. Issuing bank never 'negotiates', it alwas pays (honours).
  2. Under its own credit, an issuing bank always remains liable to honour or to pay from the time it issues the credit (Article 7.b). This commitment is irrespective of whether there is a nominated bank, or whether that nominated bank acts under the credit.

To clarify further, if the nominated bank refuses to act under a credit, the complying documents can always be presented to the issuing bank for payment, provided they are presented within the expiry date of the credit.

smmujeeb
Offline
Joined: 07/29/2008
Nope

Issuing bank will never be negotiating bank, and hence cannot negotiate the documents.

Credit will always be available with issuing bank, nominated bank, confirming bank (if any).

Article 6 states credit will be available with issuing bank and Nominated.

 

 

maildilprit
Offline
Joined: 08/12/2008
thanks

Dear smmujeeb

Thanks a lot

maildilprit
Offline
Joined: 08/12/2008
thanks

Dear smmujeeb

Thanks a lot

//
//